Hotel tax dollars up in Deschutes County
Published 9:15 am Wednesday, February 26, 2025
- Visitors sit in the hot tub and swim in the pool at the Campfire Hotel in Bend Monday afternoon.
Good snow this winter has proven to be good news for Central Oregon tourism, as visitor spending increased, along with the transient room tax collection in December 2024 compared to the previous year, according to Visit Central Oregon data.
In Deschutes County, Redmond and Sisters showed an increase of transient room tax collection, said Scott Larson, Visit Central Oregon CEO.
Bend collected $709,434 in transient room taxes, a 0.1% decline over the previous December, according to the data. Deschutes County as a whole, however, collected 11.2% more transient room taxes in December 2024 than it did in the same period the year before, according to the data. In December, the county collected $795,668 in room taxes, according to the monthly data.
Hotel room rates in Bend were up 0.8% in December compared to the previous December. Typically room rates and occupancy are lower in the winter months compared the June through September. In December, room rates in Bend were an average of $105.64 a night, compared to $214.37 in July, according to STR monthly room rate data reported to Visit Bend.
Since July 1, visitor-generated tax revenue contributed $6.22 million to the city of Bend, according to the Visit Bend data.
Visitor spending for Crook, Jefferson and southern Wasco county for the month of December was up 6%, but the average daily room rate remained relatively flat, according to the data.
Tracking tourism numbers is important for Central Oregon, as the industry is among the largest employers. Hospitality and tourism employs about 10,650 people. From July 1, 2023 to June 30, 2024, the tourism and hospitality sector contributed $14.3 million in lodging taxes to the city of Bend.
“We attribute much of this year over year growth to great snow and having a strong start to the winter season,” Larson said.
At the Campfire Hotel, a dog-friendly Portland-owned boutique hotel on Third Street, it’s been a good winter so far, said Keagan Parks, Campfire Hotel general manager. The hotel and POWDR Corp., the owners of Mt. Bachelor ski area, have an arrangement to house staff at a reasonable rate in part of the hotel.
“We’re having a very good winter season, in fact,” Parks said. “That’s likely in part due to the wonderful snowfall seen on the mountain.”
Statewide, Deschutes and Lincoln counties have experienced growth in hotel and short term vacation rental revenue, according to data provided by Travel Oregon, the marketing agency for the state. Counties like Hood River, Morrow and Multnomah, however, show a year over year decrease in hotel revenue, according to the data.
“December tends to typically be a slower month in general for visitation,” said Allie Keeney, Visit Oregon global communications manager.
The snowpack is well above normal, due to a number of large storms that rolled over the Cascades in December. Often visitors to Central Oregon come last minute after hearing about snowfall, and are drawn to Mt. Bachelor ski area.
“The early snow this year has been beneficial for Mt. Bachelor and our local environment, although it doesn’t always boost lodging numbers,” said Nate Wyeth, Visit Bend senior vice president of strategy. “A healthy snowpack gives us an advantage over other destinations with subpar conditions, attracting more visitors to Bend for skiing and other winter activities.”
While visitors are attracted to the snow, it can impede travel, particularly across the mountain passes. Too much snow and visitors tend to cancel reservations or spend less, Wyeth said. That impacts the amount of tax collected that funds city services like police, fire, road improvements, the general fund and destination marketing.
“This winter, we initially expected flat-to-slightly down numbers, so December staying steady is encouraging after a slower November,” Wyeth said. “Tourism in January saw a strong rebound compared to the same time last year, when the Martin Luther King Jr. holiday weekend was significantly impacted by a storm hampering travel.”